Table 17-9 Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
Table 17-9 Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.3P
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Question
Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
Refer to Table 17-9. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
Price
|
Quantity
|
Total Revenues
|
70
|
0
|
0
|
65
|
100
|
6500
|
60
|
200
|
12000
|
55
|
300
|
16500
|
50
|
400
|
20000
|
45
|
500
|
22500
|
40
|
600
|
24000
|
35
|
700
|
24500
|
30
|
800
|
24000
|
25
|
900
|
22500
|
20
|
1000
|
20000
|
15
|
1100
|
16500
|
10
|
1200
|
12000
|
5
|
1300
|
6500
|
0
|
1400
|
0
|
Refer to Table 17-9. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?
Group of answer choices
$250
$500
$750
$1000
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